Question 1

A partnership is a business which is:

Accepted Answer

A) easy to form. 
B) ends with the death of a partner. 
C) owned by more than one person. 
D) All of these answers are correct. 
A) easy to form. 
B) ends with the death of a partner. 
C) owned by more than one person. 
D) All of these answers are correct.

Question 2

Withdrawals are business expenses that are included on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

Victoria received $400 from customers in partial payment for accounting services performed previously.The recording of this transaction would:

Accepted Answer

A) increase Cash and Victoria's Capital $400. 
B) increase Cash and decrease Accounts Receivable $400. 
C) increase Cash and increase Accounts Receivable $400. 
D) decrease Accounts Receivable and increase Victoria's Capital $400. 
A) increase Cash and Victoria's Capital $400. 
B) increase Cash and decrease Accounts Receivable $400. 
C) increase Cash and increase Accounts Receivable $400. 
D) decrease Accounts Receivable and increase Victoria's Capital $400.

Question 4

Ryan withdrew cash from the business to pay his personal cell phone bill.The expanded accounting equation changes include:

Accepted Answer

A) increase in both Cash and Withdrawal. 
B) decrease in both Cash and Withdrawal. 
C) decrease in Cash and increase in Withdrawal. 
D) increase in Cash and decrease in Withdrawal. 
A) increase in both Cash and Withdrawal. 
B) decrease in both Cash and Withdrawal. 
C) decrease in Cash and increase in Withdrawal. 
D) increase in Cash and decrease in Withdrawal.

Question 5

A revenue should be recorded when:

Accepted Answer

A) it is earned. 
B) payment is received. 
C) the invoice is sent to the customer. 
D) None of the above are correct. 
A) it is earned. 
B) payment is received. 
C) the invoice is sent to the customer. 
D) None of the above are correct.

Question 6

Logan's Motor Sports buys $30,000 of equipment on credit.Which of the following is a true statement?

Accepted Answer

A) Total assets increase. 
B) Total assets are unchanged. 
C) Total liabilities decrease. 
D) Total liabilities are unchanged. 
A) Total assets increase. 
B) Total assets are unchanged. 
C) Total liabilities decrease. 
D) Total liabilities are unchanged.

Question 7

Cash investments by the owner increases both equity and assets.

Accepted Answer

A) True 
 B)False

Question 8

Which accounts are affected when the company pays salaries?

Accepted Answer

A) Assets and Capital 
B) Liabilities and Capital 
C) Assets and Expenses 
D) None of the above are correct. 
A) Assets and Capital 
B) Liabilities and Capital 
C) Assets and Expenses 
D) None of the above are correct.

Question 9

If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period:

Accepted Answer

A) owner's withdrawals decrease net income. 
B) net income causes liabilities to decrease. 
C) the business will incur a loss. 
D) owner's withdrawals increase owner's equity. 
A) owner's withdrawals decrease net income. 
B) net income causes liabilities to decrease. 
C) the business will incur a loss. 
D) owner's withdrawals increase owner's equity.

Question 10

Record the following transactions into the expanded accounting equation for the Mayoras' Law Firm.Note that all titles have beginning balances.(You will need to determine the beginning capital balance.)
a.Provided legal services for cash,$1,200
b.Billed customers for services rendered,$2,400
c.Received and paid the monthly utility bill,$300
d.Collected $600 on account from customers
e.Paid supplies expense,$250
f.Withdrew $300 cash for personal use
$\begin{array}{c}
\text { Mayoras' Law Firm }\
\begin{array} { | l | r | r | l | r | r | r | l | l | l | } 
\hline & & { \text { ASSETS } } & = & \text { LIAB. } & \begin{array} { c } 
\text { OWNER'S } \
\text { EQUITY }
\end{array} & & & \
\hline & \text { Cash } + & \text { Accts.Rec. } & = & \begin{array} { c } 
\text { Accts } \
\text { Payable }
\end{array} & \begin{array} { c } 
\text { Mayoras, } \
\text { Capital }
\end{array} & + \text { +Rev. } & \text {-Exp } & \begin{array} { c } 
\text {-Mayoras } \
\text { Withdrawal }
\end{array} \
\hline \text { beg. } & \$ 900 & \$ 100 & = & \$ 300 & \text { ?? } & & & \
\hline \text { a. } & & & & & & & & \
\hline \text { b. } & & & & & & & & \
\hline \text { c. } & & & & & & & & \
\hline \text { d. } & & & & & & & & \
\hline \text { e. } & & & & & & & & \
\hline \text { f. } & & & & & & & & \
\hline \text { T } & & & & & & & & \
\hline
\end{array}
\end{array}$

Accepted Answer

The answer of Record the following transactions into the expanded...

Question 11

Expenses are recorded as costs of doing business whether cash was paid or not.

Accepted Answer

A) True 
 B)False

Question 12

The income statement is a financial statement showing business results in terms of revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 13

Katie's Vegetarian Restaurant,with total assets of $90,000,borrows $15,000 from the bank.Which of the following is a true statement upon borrowing the money?

Accepted Answer

A) Total assets are now $105,000. 
B) Total assets are now $80,000. 
C) Total assets are now $15,000. 
D) Total assets are now $75,000. 
A) Total assets are now $105,000. 
B) Total assets are now $80,000. 
C) Total assets are now $15,000. 
D) Total assets are now $75,000.

Question 14

In a shift of assets,the composition of the assets changes but total assets do not change.

Accepted Answer

A) True 
 B)False

Question 15

Items owned by the business such as land,supplies and equipment are:

Accepted Answer

A) assets. 
B) liabilities. 
C) owner's equity. 
D) revenue. 
A) assets. 
B) liabilities. 
C) owner's equity. 
D) revenue.

Question 16

What is the difference between Bookkeeping and Accounting?

Accepted Answer

Bookkeeping is the recording function wi

Question 17

The net income or net loss is calculated on the:

Accepted Answer

A) balance sheet. 
B) statement of owner's equity. 
C) income statement. 
D) none of these. 
A) balance sheet. 
B) statement of owner's equity. 
C) income statement. 
D) none of these.

Question 18

If a company's revenues are higher than its expenses,it will cause:

Accepted Answer

A) an increase in owner's equity. 
B) a decrease in owner's equity. 
C) an increase in assets. 
D) no effect on owner's equity. 
A) an increase in owner's equity. 
B) a decrease in owner's equity. 
C) an increase in assets. 
D) no effect on owner's equity.

Question 19

Which of the following would result if a business purchased Equipment paying a 40% down payment in cash?

Accepted Answer

A) Equipment would increase and Cash would decrease. 
B) Accounts Payable would increase. 
C) Since the equipment has not been paid in full,there is nothing to record. 
D) Both A and B are correct. 
A) Equipment would increase and Cash would decrease. 
B) Accounts Payable would increase. 
C) Since the equipment has not been paid in full,there is nothing to record. 
D) Both A and B are correct.

Question 20

Which of the following will be recorded in the owner's equity column as an increase?

Accepted Answer

A) An exchange of assets 
B) The purchase of an asset on credit 
C) An investment by the owner 
D) A withdrawal by the owner 
A) An exchange of assets 
B) The purchase of an asset on credit 
C) An investment by the owner 
D) A withdrawal by the owner

Exam 1: Accounting Concepts and Procedures

A partnership is a business which is:

Withdrawals are business expenses that are included on the balance sheet.

Victoria received $400 from customers in partial payment for accounting services performed previously.The recording of this transaction would:

Ryan withdrew cash from the business to pay his personal cell phone bill.The expanded accounting equation changes include:

A revenue should be recorded when:

Logan's Motor Sports buys $30,000 of equipment on credit.Which of the following is a true statement?

Cash investments by the owner increases both equity and assets.

Which accounts are affected when the company pays salaries?

If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period:

Expenses are recorded as costs of doing business whether cash was paid or not.

The income statement is a financial statement showing business results in terms of revenues and expenses.

Katie's Vegetarian Restaurant,with total assets of $90,000,borrows $15,000 from the bank.Which of the following is a true statement upon borrowing the money?

In a shift of assets,the composition of the assets changes but total assets do not change.

Items owned by the business such as land,supplies and equipment are:

What is the difference between Bookkeeping and Accounting?

The net income or net loss is calculated on the:

If a company's revenues are higher than its expenses,it will cause:

Which of the following would result if a business purchased Equipment paying a 40% down payment in cash?

Which of the following will be recorded in the owner's equity column as an increase?

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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